The Total Care Program System At Garuda Indonesia Is Considered To Be More Efficient

Garuda Indonesia aircraft. (Syamsul Ma'arif / VOI)

JAKARTA - During Emirsyah Satar's leadership, the implementation of the aircraft procurement and engine maintenance program at Garuda Indonesia never saw any intervention and favoritism to choose or win certain parties. All procurement processes run normally through team reviews and board meetings where a decision is made by the board of directors based on the team's proposal, without any intervention or coercion.

That is the outline of the testimony at the fourth trial of the former president director of Garuda Indonesia, Emirsyah Satar at the Central Jakarta District Court, Thursday, January 23, 2020. Present as witnesses were Handrito Hardjono, former Garuda finance director, Agus Priyanto, former commercial director, Rajendra kartawiria. , former VP CEO Office, and Norma Aulia, Garuda accounting manager.

Emirsyah Satar, who was charged with imposing engine maintenance using the Total Care Program (TCP) method compared to Time Material Based (TMB), was confirmed by witness testimony at the Central Jakarta Court. The witness Rajendra Kartawiria, former VP CEO Office, explained that TCP is like a mechanism in insurance.

According to Rajendra, payments through the TCP mechanism are made based on flight hours per month. So, when the aircraft engine is damaged and has to be lowered, a replacement engine will be given. Meanwhile, the TMB method is fluctuating, if there is a breakdown and there is no spare engine, the cost can be more expensive.

"TMB was cheap at the beginning but the competition was not good, because when the plane was being repaired, the plane would not run. Meanwhile, with the Total Care Program, the replacement process and the provision of replacement engines were all carried out by Rolls Royce," Rajendra said in a statement received by VOI, Thursday 23 January.

Emirsyah Satar, who was also charged with forcing the Bombardier CRJ 1000 aircraft to be selected, although the Embraer E190 aircraft was superior, it was still not proven. Witness Agus Priyanto also stated that the matter of aircraft selection and procurement decisions were decisions of the board of directors meeting.

The entire aircraft procurement process is carried out by following the proposal of the procurement team consisting of staff from various units, and decisions taken are made collegially by the entire board of directors. In fact, with regard to the calculation and performance of the team's suggestions that fluctuate, Emirsyah Satar has ordered the internal audit unit to conduct an audit.

In fact, the selection of the Bombardier CRJ 1000 aircraft was a proposal by the Team and the aircraft cost 3 million US dollars cheaper per unit than the Embraer E190 aircraft.

Witness Agus Priyanto also stated that previously, of the six Airbus planes that could not fly, there were two planes, due to many engine problems. However, from 2007 onwards when using TCP, Airbus aircraft performance improved, which was indicated by the increase in the rating (Garuda rank) on Skytrax, an independent airline rating agency based in London.

Meanwhile, witness Norma Aulia also stated, between Garuda and Rolls Royce there is a Supplementary Financial Agreement, in which every delivery of an aircraft with a Rolls Royce engine, Garuda will get a kind of cashback, namely the engine consession from Rolls Royce which is given to Garuda.

And it was revealed that during the period 2012 to 2016 Garuda received cashback from Rolls Royce worth a total of US $ 443.89 million.